CITY COMMISSION AGENDA ITEM

Department:	City Manager’s Office		Commission Meeting Date:  December 18, 2018
Staff Contact:	Diane Stoddard, Assistant City Manager
Recommendations/Options/Action Requested:
Authorize City Manager to sign a letter of agreement and any other necessary documents with Willdan Group, Inc. of Lawrence, Kansas enabling the City of Lawrence to participate in any tax savings enjoyed by Willdan Group, Inc. related to the design of various energy efficient projects for the City of Lawrence.
Executive Summary:		The Willdan Group, formerly 360 Energy Engineers, recently completed construction of various improvements for the City of Lawrence resulting in energy efficiency under the State of Kansas Facility Capital Improvement Program (FCIP).  Federal tax regulations enable companies completing the design of improvements to pubic buildings that meet certain energy efficiency standards to enjoy a tax benefit.  The Willdan Group has made arrangements with several other public entities to share the savings related to the tax deduction.  That is what is proposed in this case.  The City of Lawrence would share in any tax deduction received by Willdan Group relating to the design of City improvements.  This is beneficial to Willdan but also to the City of Lawrence.  Staff proposes that the savings be shared with the City in the form of a cash contribution to the City, an option which enables more flexibility than the provision of services.  The final benefit to the City will be 50% of the tax benefit, after deduction of any third-party certification costs needed to qualify for the benefit.  The approximate estimate of the final benefit to the City of Lawrence is $64,000.
Strategic Plan Critical Success Factor		Collaborative Solutions Economic Growth and Security
Fiscal Impact (Amount/Source):		The fiscal impact to the City is estimated at $64,000 in revenue benefit.  The funds would be deposited into the Capital Improvement Reserve Fund, recognizing its tie to capital improvements made by the City of Lawrence.
Attachments:		Letter of Understanding with Willdan Group Certification Letter

Reviewed By: (for CMO use only)

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